If you’re looking to start a business in Sharjah, one of the first things you’ll need is a general trading license. This license allows you to engage in a wide range of trading activities within the emirate, making it an asset for any aspiring entrepreneur. With a general trading license, you can import, export, and trade a variety of goods and services, opening countless opportunities for growth and success.
Acquiring a general trading license in Sharjah is a relatively straightforward process, but it does require some careful planning and preparation such as choosing a business name & legal structure, gathering essential documents, acquiring trade license from Sharjah Economic Development Department (SEDD), and other legal considerations.
In fact, SEDD reported that the total number of business licenses issued in 2023 increased by 2%, while license renewals saw an even more impressive jump of 4.4%. These figures highlight the growing confidence investors have in Sharjah’s business environment.
Hence, with trading license in hand, you can start conducting business activities legally in Sharjah and take advantage of the numerous opportunities available in the emirate.
Here we will explain everything you need to know from defining your business activities to obtaining your official license in Sharjah.
General Trading License in Sharjah
A General Trading License in Sharjah allows a business to import, export, and trade a wide range of goods within the emirate. It’s a popular choice for businesses with diverse trading activities.
Activities permitted under a General Trading License:
- Importing goods
- Exporting goods
- Wholesaling goods
- Retailing goods (depending on the good and location)
This license typically covers a vast range of goods, but there might be exclusions for specific products requiring special permits.
Types of Trading License Sharjah
Sharjah offers several types of trading licenses for different business activities. This typically includes:
1. General Trading License
A general trading license allows you to import, export, and trade a wide range of goods within Sharjah. It’s a popular option for businesses with diverse trading activities.
2. Commercial License
While similar to a General Trading License, a Commercial License might have a more specific scope depending on the exact commercial activity. It’s advisable to consult with the Sharjah DED to understand the specific activities covered under this license.
3. Industrial License
An industrial license is required for businesses involved in manufacturing or industrial operations like the production and packaging of goods.
4. Professional License
A professional license is for businesses offering professional services such as consultancy, legal services, accounting, or other specialized services.
How to Get a General Trading License in Sharjah
Obtaining a general trading license in Sharjah involves several steps and specific requirements, including:
1. Define Your Business Activities
Identify the specific goods you plan to import, export, and trade. The Sharjah DED offers a list of tradable goods under a General Trading License, but it’s always best to confirm for your specific case with our business setup experts at Shuraa.
2. Choose Your Business Structure
Decide on the legal structure of your company, such as a Sole Proprietorship, Limited Liability Company (LLC), or Branch of a Foreign Company. This will impact on requirements and costs.
3. Select a Trade Name
Ensure the name adheres to Sharjah’s naming conventions and is not already in use. Reserve the trade name through the Department of Economic Development (DED).
4. Secure an Office Space
Lease or purchase a commercial space that meets DED regulations. Obtain a tenancy contract for the chosen location.
5. Prepare and Submit the License Application
Gather required documents like passports, visas, Memorandum of Association (MOA), tenancy contract, and any approvals from other authorities (if applicable). Submit the application and all documents to the DED.
6. Settle License Fees
Fees vary depending on your chosen business structure, office location, and chosen activities.
7. Open a Corporate Bank Account
Open a corporate bank account in Sharjah to facilitate your business transactions.
8. Obtain Your Trade License
Once your application is approved and fees are settled, you’ll receive your official General Trading License.
Depending on the nature of your business activities, you may need additional approvals from other government departments.
General Trading License in Sharjah Free Zone
A General Trading License obtained within a Sharjah Free Zone (SFZ) differs slightly from the standard Sharjah license. A Sharjah Free Zone General Trading License is ideal for businesses seeking the benefits of a free zone while engaging in import, export, and general trade.
Free Zones offer various benefits, including:
- Tax exemptions on corporate and personal income taxes
- 100% foreign ownership
- Simplified customs procedures
- Repatriation of capital and profits
How to get a General Trading License in a Sharjah Free Zone
To obtain a general trading license in Sharjah Free Zone follow these simple steps:
1. Choose a Free Zone
Sharjah has multiple Free Zones, each catering to different industries or offering unique benefits. Research and select the Free Zone that best suits your business needs.
2. Understand License Requirements
The specific requirements for a General Trading License might vary between Free Zones. The Free Zone authority will provide details on necessary documents, fees, and procedures.
3. Complete the Application Process
This typically involves submitting documents, completing formalities, and paying fees as per the Free Zone’s regulations.
4. Obtain Your License
Once your application is approved and all fees are settled, you’ll receive your official General Trading License for the specific Free Zone.
Free Zone licenses often come with annual renewal fees. Some Free Zones might have restrictions on the types of goods allowed for trade. Be sure to confirm these details with the chosen Free Zone authority.
General Trading License Cost in Sharjah
The cost of a General Trading License in Sharjah can range anywhere from AED 5,000 to AED 30,000 or even more, while a specialized license or a Free Zone license might have different fee structures.
The cost of obtaining a trading license in Sharjah can vary depending on several factors:
- Type of business license
- Type of business activity
- Company structure
- Additional regulatory approvals
Free Zone authorities often have set up packages with inclusive fees covering license issuance, visas (if applicable), and office space within the Free Zone.
Contact our business setup specialist in Sharjah. They can provide a personalized quote based on your specific business needs and chosen license type.
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Start Your Sharjah Business Journey Today
Getting a general trading license in Sharjah is a great step for anyone looking to start a business in this growing city. Sharjah is quickly becoming a major business hub, offering many opportunities for entrepreneurs.
With a general trading license, you can trade a wide variety of goods, giving you access to many different markets. The process involves several steps, from choosing your business structure to getting all the necessary approvals and paperwork done. While it might seem complicated, it’s manageable with the right guidance.
To make the process smoother, consider getting help from business setup experts like Shuraa Business Setup. Our team can assist you with everything you need, including licensing, paperwork, finding office space, visas, and PRO services.
Get in touch with one of our experts today at +971 4 4081900, via WhatsApp at +971 50 7775554, or by sending an email to [email protected].
